Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Pension Governance topic
No spam. Unsubscribe anytime.
Pension stakeholders seek PRIM board seat and changes to underfunding rules
Summary
Representatives of firefighter unions and contributory retirement systems testified in favor of bills to add worker representation on joint purchasing committees, secure a PRIM Board seat for non‑state systems and change the thresholds that trigger mandatory PRIM participation for underfunded municipal systems.
Representatives of public pension stakeholders told the Joint Committee on Public Service they support multiple bills to change governance and underfunding rules affecting municipal and county retirement systems and PRIM, the state pension asset pool.
"We are on the record in support of House Bill 2999 and related measures," Paul Jacques, legislative agent for the Professional Firefighters of Massachusetts, said, urging fair worker representation on joint purchasing group committees. Jacques told the committee the organization had submitted written testimony and limited oral remarks for time.
Michael O'Reilly, legislative agent for the Massachusetts Association of Contributory Retirement Systems, described several companion bills including House Bill 2933 and Senate Bill 1816 to adjust PRIM board membership and House Bill 2954 (and companion House Bill 1813) to change the definition of underperforming systems. O'Reilly cited the statutory origin of the PRIM fund in Chapter 661 of the Acts of 1983 and said PRIM now holds about $25 billion. He summarized the funding‑ratio rule as currently classifying systems as underperforming if they are below 65% funded and experience a more than 2% draw on the PRIM fund over the previous 10 years; the proposed change would lower the threshold to 50% and raise the PRIM draw threshold to 3%, and would change an existing ‘‘in perpetuity’’ provision so mandatory inclusion could end after five years.
O'Reilly also said both bills would allow non‑state, non‑teacher systems a seat on the PRIM Board to represent those assets. He and Jacques said they would submit fuller written testimony before the committee's deadline; Kathleen Calabichetti, identified as their association president, was attending an annual conference and did not present oral testimony.
No committee votes were reported during the hearing.
